Universal Charitable Deduction

Charitable giving from average donors needs a boost. These donors are giving less frequently, and smaller gifts are on the decline. Deductions on tax returns provide an incentive for this group of donors.

The Universal Charitable Deduction for non-itemizers will expire at the end of 2021. The Alabama Association of Nonprofits would like to expand and extend this deduction and you can help by signing a letter to urge Congressional support. Go here to read and sign the letter crafted by the Charitable Giving Coalition.

Most households now elect the standard deduction rather than itemizing charitable deductions on their tax returns. This is because many individuals and families receive a higher deduction this way ($12,550 for individuals and $25,100 for joint filers). During 2020 and 2021, individuals could take a universal charitable deduction in addition to that standard. It was created to encourage charitable giving during the pandemic. For 2021 you can include a $300 (individual) or $600 (joint) charitable deduction on your tax return. AAN and many other nonprofits hope to increase this amount and extend the deduction into future years.

Please take a moment to help expand charitable giving for the nonprofit sector and consider signing the Charitable Giving Coalition’s letter of support. The deadline is Wednesday, December 1, 2021.